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2 Overview of Presentation Introduction and International Overview (MS) Update on Mutual Recognition among International Actuarial Bodies (MFM) European Perspective (AU) The Actuary in the UK (PG) Discussion

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Actuaries in Other Countries 1999 CAS Seminar on Ratemaking A European Perspective Alice Underwood

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7 The Continental European Insurance Industry Many small, largely self-contained markets. (But how much will the Euro change this?) Several different languages. Various regulatory bodies and sets of accounting standards. No statistical reporting agency such as ISO or NCCI. Quality of companies’ internal systems and data collection varies from country to country. The property-casualty actuarial profession is still relatively “new.”

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8 Actuarial Training and Qualifications in Europe Professional requirements vary from country to country  exam systems  academic degree programs  on-the-job-training The ability to speak several languages is extremely valuable. Generally, a greater emphasis on academic education than in the US. (A Ph.D. in mathematics is considered a big plus.) But just as in the US, European actuaries are a very diverse group.

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9 Property-Casualty Actuarial Functions in Europe Reserving: historically done by the accountants. Pricing: historically markets had tariff rates, and/or pricing was done by underwriters. Currently actuaries are moving into reserving and pricing roles. Actuarial responsibilities can also include Special data studies Software development Product development

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10 Actuaries in the European Company Structure There may not be an “actuarial department” as such. Even if the company has several actuaries, they may be scattered about the organization. There may or may not be a Chief Actuary. Actuaries and/or the Chief Actuary may report to the CEO, CFO, the Chief Underwriter, or to another officer.

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12 Some Oversimplifications and Stereotypes: the North American point of View European ActuariesNorth American Actuaries Mathematicians Statisticians Academics “first” Business people “first” TheoryData Over-complicated MathematicsStraightforward Methods

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13 Some Oversimplifications and Stereotypes: the European point of View European ActuariesNorth American Actuaries Mathematicians Statisticians Highly Educated American “Educated” Elegant ModelsNumber Crunching Mathematically Sophisticated Unsophisticated

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14 But here comes the part you REALLY want to know: what about NON-ACTUARIAL stuff?

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15 Language Issues Yes, English is widely spoken. But… You will be much more effective in business situations if you can speak (or at least understand) the local language… better yet, several languages. Probably some of your coworkers will be uncomfortable speaking English. You will almost certainly need to use the local language outside the office. If you don’t speak the language perfectly, this is a limitation. But it’s one you can overcome.

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17 Lifestyle issues Again the nature and importance of these issues will vary from country to country. But possible considerations include: Married, or single? Children Pets Cost of living Vacation Laundry

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18 Bureaucracy Once again these issues are strongly country-dependent: Work permits Other government paperwork The hiring process Notice period Pensions Taxes

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19 Potential “Downsides” of Living Abroad Culture shock Language barriers Expense Isolation  Professional  From family and friends  From US politics and popular culture

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20 Potential “Upsides” of Living Abroad Travel Vacation Tax savings? Cultural enrichment Developing language skills New solutions to the “two body” problem Isolation from US politics and popular culture

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21 General Pointers Set your preconceived notions aside. Learn more about the country you’ll be working in.  Topics: as previously mentioned  Sources: books, internet, people Brush up on your language skills. Once there, watch and listen to how other people interact. Be patient. Don’t assume that the North American way of doing things is always the best way. (Or at least don’t say that is is!)

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Actuaries in Other Countries 1999 CAS Seminar on Ratemaking The Actuary in the UK Paul Gates